The government is set to increase the state-guaranteed price paid to cocoa farmers by nearly 45% for the 2024/25 crop, season.
This price hike aims to enhance farmers’ incomes and curb the smuggling of cocoa beans out of the country.
The proposed new price, set at ¢48,000 per ton, or ¢3,000 per 64 kg, awaits cabinet approval, but the sources believe it is unlikely to change.
This follows a mid-season price increase in April for the 2023/24 season, where Ghana, the world’s second-largest cocoa producer, raised the farmgate price by over 58% to ¢33,120 per ton.
The increase came after Ivory Coast, the leading cocoa producer, raised its price to 1,500 CFA francs per kg.
The two countries, which account for more than 60% of the world’s cocoa supply, have coordinated pricing and supply efforts to sustain the sector and support their farmers.
The anticipated price increase comes amid a challenging season, with disease and adverse weather affecting cocoa production in both Ghana and Ivory Coast.
The International Cocoa Organization recently raised its global cocoa deficit forecast for the 2023/24 season, further highlighting the pressures on the market.
Despite the challenges, the sources expect the government to proceed with the price hike to support farmers and address the ongoing issue of bean smuggling.
